non-legislation / market driven requirements engineering
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Non-legislation / Market driven requirements Engineering. August 2014. Non-legislation / market driven requirements. What are market driven requirements? Social requirements Product safety Environmental requirements. Non-legislation / market driven requirements. - PowerPoint PPT PresentationTRANSCRIPT
Non-legislation / Market driven requirements
Engineering
August 2014
Non-legislation / market driven requirements
What are market driven requirements?
Social requirements
Product safety
Environmental requirements
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Non-legislation / market driven requirements
What are market driven requirements?
Social requirements
Product safety
Environmental requirements
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LegislationConsumer / User
Health and SafetyEnvironment
E.g. Packaging, WEEE,
RoHS, Cadmium
CE Marking/HACCP
Social / FairTrade labels
SA 8000 / OHSASCertificate
Codes ofconduct
ISO 9000 seriesCertificate
EN / IS0norms
ECO LabelsIS0 14001Certificate
Quality Social accountability Environment
Market driven
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(EU) Legislation: (EU) Buyer Requirements:
Market access requirements
Environmental Issues Product / packaging
Consumer Health & Safety
Social issues
Environmental issues Manufacturing
Impact abroad e.g.exporting country
Direct impactin the EU
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Black BoxPurchase requirements:
-Social-Product safety-Environmental-Quality
ConsumersConsumer products
NGOs
Governments
Company policy
Legislative compliance:- Consumer health and safety - Environment
Public pressure:- Replace dangerous chemicals- Brands: responsibility for supply chain
Expect:- Safe products- Good circumstances
Company values
Clients- Products according to specs- High quality assurance
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Why comply?
Minimum requirements for becoming a supplier
Preferred supplier & Niche markets
Preferred supplier main stream markets
Non legislative requirements
Most non legislative requirements deal with:
•Quality Product / market / buyer specific
•Social issues
•Product safety
•Environmental issues
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Non legislative requirements
These requirements are included in:
•Sector Codes
•Company Codes of Conduct
•Supplier Declarations
•Management systems
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Examples
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The Volvo Group prefers to work with component suppliers, consultants, distributors and other business partners that share the principles expressed in this Code of Conduct.
Examples
Dutch sector association for the Metal sector13000 SMEs in the Netherlands
A CSR monitor to assist their members in integrating CSR in their policies and operations
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Examples
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Example of non-legislative requirements
NSK
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Centre for the Promotion of Imports from developing countries | September 2010
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References, Management and performance
ISO 26000ILOOECDGRI
ISO 26000ISO 14001OHSAS 18001
GRISA 8000labels
References Management Performance
What is CSR?
Disclosure and complianceWhat to do and how?
Continuous improvement
CSR References
Reference
ISO 26000 The international guideline for CSR
ILO The basis for most labour related CSR initiatives
OECD Guidelines Expectations of governments with regard to the behaviour of multinational enterprises
Global Compact An international CSR initiative which companies can join
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ISO 26000 – Guidance on Social responsibility
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Developed by developed and developing countries
To be used as an international reference on SR•What is (C)SR?•What do the issues mean?•What is expected from companies?
To be used as a guidance document•How to identify stakeholders?•How to implement CSR in the organisation?
Not for certification (self declarations)
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Companies use ISO26000 to develop their CSR policy
Including requirements for suppliers
Social requirements
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Social requirements
Social issues have become increasingly important in international trade
Negative publicity on labour conditions may have an impact on your
clients’ reputation and sales → your sales
It is not just about buyers’ requirements!
Improved labour conditions will positively impact productivity,
recrutement and retention of high quality personel
It is a part of a responsible / decent business
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Social requirements - ILO
ILO Conventions
•UN organization dealing with aspects of work
•International labour standards
•Governments are obliged to implement ratified Conventions in their own national policies.
•Many social requirements on labour conditions by the private sector are based on the ILO Conventions
Which of the (185) ILO Conventions are being used by the private sector as market access requirements?
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Social issues – 8 core ILO Conventions
1. Right to union membership and to negotiate
2. Non-discrimination
3. Forced labour
4. Minimum age
5. Working hours
6. Equal remuneration
7. Minimum wages
8. Occupational Health and Safety
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Social issues – example of BSCI
Business Social Compliance Initiative
• Focus on social issues+Compliance with environmental legislation
• Based on ILO
• One auditing system for the European retail and brands based on a common code ; no certificate
• Suppliers that are audited will be included in the CBI database
• BSCI members can use this database
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BSCIOver 1000 members: retail, brands and manufacturers
BSCI
Use the code as a benchmark for your organisation
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Also look at other codes of conduct!
Social issues – Conflict minerals
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Due diligence and traceability
Partners:
Nokia, Blackberry, Philips, HP, Motorola, Tata steel, etc.
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Managing social issues: OHSAS 18001Occupational Health and safety Assessment Series
• A framework for managing occupational health and safety responsibilities
• Tools to identify elements of your business that have an impact on health and safety
• Designed for all sectors
• Non-accredited certificates
• Implementation is structured along the lines of ISO 14000
• It is a tool to improve on OHS and show commitment
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Performance on social issue: SA 8000
SA8000• International standard for working conditions
• The first auditable social standard / independent
• Standards: what is considered social accountability? & Requirements for a management system: implementation of the standards in business policy
• Certification by means of independent verification
• Applicable to all industries
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SA 8000Standards based on ILO and other human rights conventions
9 core areas: 1. child labour 2. forced and compulsory labour 3. health and safety 4. free association and collective bargaining5. discrimination6. disciplinary pratices7. working hours 8. remuneration (compensation)9. management systems (incl. supplier control and stakeholder engagement)
Product safety requirements
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Product safety
Companies tend to require more than what is legally obligatory: risk management
•Longer lists of hazardous substances•More stringent requirements•Pro active on legislation (e.g. SVHC in REACH)
Codes of ConductSubstances restrictions
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Product safety - example
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“Policies can be developed that may go beyond legislative compliance based on scientific evidence and stakeholder consultation”
“Each supplier is required to ensure product compliance with this list”
Environmental requirements
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Environmental requirements
Focus of buyers on products
•Design for recycling / Reuse
•Use of hazardous substances (also as a result of RoHS, REACH, CE)
•Biobased / circular economy / Cradle to cradle
•Packaging
•Transport
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Environmental requirements
Focus of buyers on processes
•Emissions of hazardous substances
•Energy use
•Water use
•Impact on biodiversity
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ISO26000:•Prevention of pollution•Sustainable resource use•Climate change mitigation and adaption•Protection of the environment, biodiversity and restoration of natural habitats
Environmental issues - example
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Environmental issues – example Volvo
• Suppliers also responsible for sub-suppliers
• Comply with applicable legislation• Have knowledge of Volvo’s policy• ISO 14001 or EMAS• Able to report on environmental work• Maintain an open dialogue with Volvo
for improvements• Environmental data must be available
on request• Chemicals and materials involved must
meet Volvo standard requirements
• Comply with REACH• Minimize impact of packing materials• Handle excess and rejected materials
with minimal impact• Consider use of
recycled/recyclable materials• Supply specified chemical and material
content on request according to the International Material Data System
Environmental issues - Philips
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Environmental issues - Management
ISO 14001
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ISO 14001
Why ISO 14001?
• Improved perception of the key environmental issues by employees and a
better (greener) public image of the organization
• An increase in the efficiency and use of energy and raw materials
• Improved ability to meet compliance with environmental regulations
• Dependence on a system rather than just the experience and capabilities of
an individual to manage the environmental function of an organization.
But: No guarantee for good environmental performance!
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ISO 14001
Market Impact
• The standard is widely used in many countries; also without actual certification
• ISO 14001 required / preferred by some buyers
• Integration in Public green procurement (certification not required)
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Showing performance: environmental labels
• Communication tool: Business to business or consumer• Mainly niche markets, increasingly mainstream in food• Mostly on products, not on components
Some environmental product labels in the EU
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Environmental labels
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Labels… How to use them?
• To use to identify key issues & best in class
• To benchmark your products / processes
• To show compliance with specific social & environmental
requirements in the supply chain (B2B)
• To show that you perform better than the competition
• Some labels required by legislation (like CE)
How to keep track?
Check for your products and potential export countries!
Use the CBI website
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So what to do?
1.Select initiatives relevant to your product or sector
2. Use self assesments & audits to benchmark your performance
3. Assess CSR Position and ambition
4. Use the tools to improve, comply and market
And…..To prevent yourself from running from one buyer
requirement to another…
develop your own Code of Conduct!
Make sure your workers understand why CSR is importantand integrate it in business operations
You are not just doing it for the market!Efficiency, productivity, innovation
&You want to run a responsible business
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